A machine costs $180,000 and will have an eight-year life, a $20,000 salvage value, and straight-line depreciation is used. Management estimates the machine will yield an after-tax net income of $12,500 each year. Compute the accounting rate of return for the investment.

A. 12.5%

B. 26.8%

C. 11.8%

D. 10.8%

E. 22.5%